Question: With regard to asset allocation, which of the possible asset classes shown in Exhibit 1 is most likely to meet the three criteria Kumar mentioned?
Equity- which consists of; Global public equity and global private equity
Fixed Income- Global investment-grade bonds and global high-yield bonds
Alternatives- Direct real estate investments and Bitcoin
Kumar states that, for purpose of asset allocation, the following criteria should be met: • asset classes should be diversifying, • asset classes should be mutually exclusive, and • assets within an asset class should be relatively homogenous.
I don’t get it -Fixed Income- Global investment-grade bonds and global high-yield bonds are homogeneous?